*BEIJING – There have been solid indications that Saudi Arabia isinterested in investing in the port city of Gwadar and other projects underthe China-Pakistan Economic Corridor (CPEC).*
It is quite beneficial for Saudi Arabia to participate in the mega-projectas it helps link its economy with China’s and facilitates the successfulimplementation of Crown Prince Mohammad bin Salman’s Vision 2030, accordingto an article published by China.org.cn on Wednesday.
As part of a holistic plan, one of its main objectives is to increasediversity in the Saudi economy, providing jobs for the Kingdom’s youngpopulation and modernizing the country.
Launching power plants and energy projects in Gwadar could help diversifythe Saudi economy as well as reduce its dependence on oil.
In addition, Saudi Arabia can benefit from the global trade traffic at theport and widen its business opportunities.
In the meantime, the UAE has also been helping provide amenities to localsin Gwadar.
Running a container service connecting the cities of Sharjah, Abu Dhabi andJebel Ali with Gwadar, the UAE has recently launched the Karachi-GulfExpress.
If the investment plans materialize, the involvement of Saudi Arabia andthe UAE would further boost Gwadar’s zone of influence and have a positiveimpact on the global economy in the long run.
China already has excellent relations with these Middle Eastern states andsuch inclusions work very well both from the geo-economic and geopoliticalstandpoint.
Though the nature and scope of investment is not confirmed yet, such atrend in investments firmly establishes the viability and feasibility ofall other CPEC projects as well and completing the model city of Gwadar isthe best way to showcase the entire “flagship corridor.”
With the possibility of the inclusion of Saudi Arabia, more Middle Easternstates and African states like the UAE and Egypt could also want toparticipate in such projects.
Based on the principles of “openness and inclusiveness,” suchcollaborations project the ethos of the Belt and Road Initiative andprovide a platform for China as well as other countries located near theroutes or “corridors.”
Explaining Prime Minister Imran Khan’s vision behind giving top priority tothe rapid industrialization plan for the port city, the Planning &Development Minister Khusro Bakhtiar said, “We cannot afford to wait anylonger as our economy does not have the luxury of time.
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Industrialization in this port city is a low hanging fruit, considering itsprospect of international connectivity and the suitable cost oftransportation.”
This one milestone can provide a plethora of opportunities that go with ablue economy and help rescue Pakistan from its economic travails.
Giving Gwadar the level of a “stand-alone” project, preparations areunderway to encourage friendly countries to invest in the next phase.
Attaining international levels of development, Gwadar port can kick offfull-scale operations and handle 300 million to 400 million tons of load ofgoods yearly once it reaches complete capacity.
Enabling the largest ships to dock due to the harbor’s natural depth andlayout, Gwadar would benefit the entire region like no other port.
Improving local infrastructure has also remained the main precondition formaking Gwadar an attractive investment destination and showcases theproject’s immediate value.
Highlighting the location and free-zone potential of the port city as itsfirst priority, a Gwadar Smart City Master Plan is also being discussed.
Providing water, energy, road and railway connectivity are alsoprerequisites for the feasibility of the project.
Setting the urban development of the city as a short-term target, theplanning commissions of both China and Pakistan agreed on developing Gwadarand establishing industries first.
As Zhou Rong from the Chongyang Institute for Financial Studies advised,”The country has to push forward the construction of industrial parks underthe CPEC, which can be a driving force for attracting clusters ofindustries.”
